Study On The Enhancement Of Corporate Value Through Serial Cross-Border Mergers And Acquisitions By Geely

In recent years,under the guidance of China’s "going global" national strategic concept,Chinese enterprises set off a wave of cross-border mergers and acquisitions.Under the circumstance of increasingly fierce internal competition,the automobile industry is also carrying out cross-border mergers and acquisitions one after another.Geely makes it a very representative enterprise in this wave of mergers and acquisitions through frequently conducting M&A in the international market and successively acquiring well-known overseas enterprises such as DSI and Volvo cars.Whether continuous cross-border mergers and acquisitions can bring value added to enterprises has been widely discussed by Chinese and western scholars.This paper takes the continuous events of Geely as an example to study and analyze the changes of its enterprise value in the continuous cross-border M&A events,so as to provide reference for other Chinese enterprises to select the M&A strategy.Based on the results of past studies about continuous mergers and acquisitions,this article expounds the course and motivation of Geely’s continuous cross-border mergers and acquisitions.The event research method and principal component analysis method were used to analyze the long-term and short-term performance of mergers and acquisitions to evaluate whether they have created corporate value for Geely.Finally,the paper summarizes experience and lessons according to research content,and offer a proposal for the latecomers.The research results show that in the event of continuous mergers and acquisitions,the performance of Geely’s continuous mergers and acquisitions declines and rises in a "U-shaped" trend.Overall,continuous mergers and acquisitions create corporate value for Geely.